Cavco Industries (NASDAQ:CVCO) Shares Gap Up Following Earnings Beat

Key Points

• Cavco Industries delivered a significant quarterly beat: EPS was $7.17 versus the $5.52 consensus, while revenue reached $656.4 million compared with expectations of $613.1 million, driven by higher home sales volume and prices.
• The earnings surprise pushed shares sharply higher, from a prior close of $547.25 to an opening price of $613.77 and a last-reported price of $619.58.
• Analyst sentiment remains favorable: Cavco has a “Moderate Buy” consensus rating and a $690 average price target, although individual views range from “Hold” to “Outperform.”

Cavco Industries, Inc. (NASDAQ:CVCO - Get Free Report)'s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $547.25, but opened at $613.77. Cavco Industries shares last traded at $619.58, with a volume of 44,051 shares trading hands.

The construction company reported $7.17 EPS for the quarter, topping analysts' consensus estimates of $5.52 by $1.65. Cavco Industries had a net margin of 7.89% and a return on equity of 16.51%. The company had revenue of $656.38 million for the quarter, compared to analysts' expectations of $613.12 million.

Cavco Industries News Roundup

Here are the key news stories impacting Cavco Industries this week:

• Positive Sentiment: Significant earnings and revenue beat: Cavco reported quarterly EPS of $7.17, well above the $5.52 analyst consensus, while revenue reached $656.4 million versus expectations of $613.1 million. Revenue increased 17.9% year over year, driven by higher home sales volume and average selling prices. Cavco Industries Reports Fiscal 2027 Second Quarter Results
• Positive Sentiment: Constructive analyst outlook: Northland Securities initiated coverage with an “Outperform” rating and a $650 price target. The firm forecasts EPS of $22.49 for fiscal 2027 and $27.71 for fiscal 2028, indicating expectations for continued earnings growth. Northland Securities Initiates Coverage on Cavco Industries
• Positive Sentiment: Analyst consensus remains favorable: Sell-side analysts rate Cavco Industries a “Moderate Buy,” while the current-year consensus EPS estimate is $22.66. Reports also cited rising backlogs and operating scale as support for the company’s longer-term growth prospects. Cavco Industries Stock Rated Moderate Buy by Sell-Side Analysts
• Neutral Sentiment: Northland’s quarterly forecasts call for EPS of $5.52 in fiscal Q2 2027, $5.86 in Q3 and $5.68 in Q4. These estimates reinforce expectations for sustained profitability, although another analyst, Craig Hallum, previously projected lower quarterly EPS of $5.21.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Zelman & Associates lowered Cavco Industries from an "outperform" rating to a "neutral" rating in a report on Thursday, August 6th. Oppenheimer began coverage on shares of Cavco Industries in a report on Wednesday, September 30th. They set an "outperform" rating and a $720.00 price objective on the stock. Northland Securities began coverage on shares of Cavco Industries in a research report on Wednesday. They set an "outperform" rating and a $650.00 target price for the company. Weiss Ratings upgraded shares of Cavco Industries from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, September 29th. Finally, Zacks Research upgraded shares of Cavco Industries from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 29th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $690.00.

Insider Transactions at Cavco Industries

In other news, CAO Paul Bigbee sold 342 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $592.00, for a total value of $202,464.00. Following the transaction, the chief accounting officer owned 736 shares of the company's stock, valued at $435,712. This represents a 31.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Choreo LLC grew its position in shares of Cavco Industries by 6.1% in the 3rd quarter. Choreo LLC now owns 383 shares of the construction company's stock worth $215,000 after buying an additional 22 shares during the last quarter. Signaturefd LLC increased its position in Cavco Industries by 96.3% during the 3rd quarter. Signaturefd LLC now owns 53 shares of the construction company's stock valued at $30,000 after purchasing an additional 26 shares during the period. GAMMA Investing LLC raised its holdings in Cavco Industries by 8.6% in the 2nd quarter. GAMMA Investing LLC now owns 415 shares of the construction company's stock worth $255,000 after purchasing an additional 33 shares in the last quarter. Parkside Financial Bank & Trust raised its holdings in Cavco Industries by 26.8% in the 2nd quarter. Parkside Financial Bank & Trust now owns 156 shares of the construction company's stock worth $96,000 after purchasing an additional 33 shares in the last quarter. Finally, Versant Capital Management Inc lifted its position in shares of Cavco Industries by 82.9% in the 3rd quarter. Versant Capital Management Inc now owns 75 shares of the construction company's stock worth $42,000 after purchasing an additional 34 shares during the period. 95.56% of the stock is owned by hedge funds and other institutional investors.

Cavco Industries Stock Performance

The company's 50-day moving average price is $548.27 and its 200 day moving average price is $552.38. The stock has a market capitalization of $4.77 billion, a PE ratio of 27.01 and a beta of 1.27.

Cavco Industries Company Profile

Cavco Industries, Inc is a manufacturer of factory-built housing and related products. The company designs and produces manufactured homes, modular homes, park model recreational vehicles, and commercial structures for residential, hospitality, and other applications. Its homes are sold through independent retailers, company-owned retail locations, and a network of housing dealers.

Cavco markets its products under several brands, including Cavco, Fleetwood Homes, Palm Harbor Homes, Nationwide Homes, Solitaire Homes, and CountryPlace.

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